Cable probes above 1.41 barrier after overall positive UK jobs data in November further boosted pound.
Unemployment and average earnings remained unchanged and in line with expectations at 4.3% and 2.5% respectively, while jobless claims unexpectedly rose to 8.6K in Nov, coming above forecast at 5.4%, but previous month’s release was revised t lower to 12.2K from 5.9K.
On the other side, average earnings excluding bonus beat forecast with 2.4% in Nov vs 2.3% previous month / forecast.
Additional support for pound came on comments from US Treasury secretary Mnuchin in Davos who said weaker is better and sent the greenback further down against its major counterparts.
Cable looks for sustained break above psychological 1.41 barrier which would further fuel pound’s rally for extension towards Fibonacci expansion targets at 1.4123 and 1.4197.
However, bulls may show hesitation at 1.41 barrier as markets need to digest data and overextended conditions on daily chart continue to warn of correction, but so far without firmer bearish signals.
Broken 1.40 barrier should ideally contain dips.
Res: 1.4118, 1.4123, 1.4197, 1.4250
Sup: 1.4048, 1.4020, 1.4000, 1.3963
